SBMA H1 earnings increase by 62% to P738MJul 18, 2014

SUBIC BAY FREEPORT - The Subic Bay Metropolitan Authority (SBMA) has recorded an increase of 62 per cent in earnings before interest, tax, depreciation and amortization (EBITDA) during the first semester this year.

This was announced by SBMA Chairman Roberto Garcia, who also cited the added flexibility in the agency's financial program as a result of its efforts to increase its earnings.

"Our EBITDA increased by 62 per cent - from P454 million in the first semester last year to P738 million in the same period this year," Garcia said in a recent press briefing.

"This gives SBMA the desired spending power and fiscal flexibility to manage its various financial obligations," he added.

Garcia explained that this year's first semester earnings of P738 million was derived from a total of P1.2-billion in operating revenue, less the P461-million total in operating expenses.

He added that the increase in EBITDA can be attributed to a 27 per cent increase in total operating revenues and a 6 per cent decrease in total operating expenses.

According to a report from the SBMA Finance Group, the Subic authority posted operating revenues of P627,319,504.39 from leases; P380,800,701.72 from port services; P8,277,995.15 from tourism services; and P182,220,722.83 from other operating incomes.

On the other hand, the agency incurred operating expenses of P194,216,593.46 in manpower; P80,823,616.77 in bad debts; P43,504,924.73 in power; P17,459,000.74 in supplies, materials and fuel; P3,584,204.33 in water; and P121,145,435.64 in other operating expenses.

Records from the SBMA Accounting Department also revealed that the agency's net income after tax to-date amounted to P322 million.

In 2013, the SBMA shattered its all-time record after posting P1.2 billion in net profit, along with the highest gross revenue of P2.1 billion and the highest EBITDA of P992 million in the 21-year history of the Subic institution.

The present SBMA administration headed by Garcia has been largely credited for turning around the agency's financial standing from several years of non-profitability to attaining record earnings starting 2012.

Garcia said the SBMA is now committed to further improving its financial condition to develop facilities here and attract more investments in the Subic Bay Freeport Zone. (30)